Apparently, Google just doesn’t make enough money from
selling text ads. That’s why as of late Tuesday, YouTube began displaying ads
on select videos. You can read about it here.
And here,
here,
and here.
There’s a lot of crying in a lot of beer from YouTube
devotees today. Ads in their precious commercial-free online video haven. From
the company who’s mantra is “Don’t Be Evil,” no less. Next thing you know
corporation sponsorships will take over a sacred event like the Olympics. Oh, wait.
To Google’s credit, the choice of 15-second overlay ads
instead of pre- or post-roll was smart. As is the fact that you can make it
disappear with the click of a mouse. We’re not sure how well advertisers will
cotton to Google’s flat rate of $20 CPM. So much for all that pay-per-performance
stuff, but hey—nice work if you can get it.
Irony aside, Google knows there’s money to be made in this
space. Why? Because people are watching According to Comscore,
nearly 75 percent of U.S. Internet users streamed online video in May,
averaging more than two streams per day. That’s why the money keeps pouring in.
Last week, social-networking video firm KickApps secured $11 million in its
second round of funding.
We’ll take today’s news as a testament to the strength of
this sector. Even if it does come from Google.